Question : Hari, Ravi and Kavi were partners in a firm sharing profits in the ratio of 3: 2: 1. They admitted Guru as a new partner for 1/7th share in the profits. The new profit-sharing ratio will be 2:2:2:1 respectively. Guru brought Rs. 3,00,000 for his capital and Rs. 45,000 for his 1/7th share of goodwill. Kavi's capital account at the time of adjustment of goodwill will be
Option 1: Credited Rs 37,500
Option 2: Debited Rs 37,500
Option 3: Credited Rs 45,000
Option 4: Debited Rs 15,000
Correct Answer: Debited Rs 37,500
Solution : Answer = Debited Rs 37500 Old Ratio of Hari, Ravi and Kavi =3:2:1 New Ratio of Hari, Ravi, Kavi and Guru =2: 2: 2: 1 Sacrifice or Gain : Hari =$\frac{3}{6}-\frac{2}{7}=\frac{21-12}{42}=\frac{9}{42}$ ( Sacrifice) Ravi= $\frac{2}{6}-\frac{2}{7}=\frac{14-12}{42}=\frac{2}{42}$ (Sacrifice) Kavi= $\frac{1}{6}-\frac{2}{7}=\frac{7-12}{42}=\frac{5}{42}$(Gain) Guru =$\frac{1}{7} \text { or } \frac{6}{42}$ (Gain) On Guru's admission Kavi has also gained to the extent of $\frac{5}{42}$ Hence, he must also compensate Hari and Ravi to the extent of $\frac{5}{42}$ of the firm's goodwill. For $\frac{1}{7}$ share, goodwill brought in by Guru= Rs. 45,000 ,
Total goodwill of the firm based on Guru's share =45,000×y=Rs .3,15,000 Kavi to compensate - Rs. $3,15,000 \times \frac{5}{42}$= Rs. 37,500 . Total Goodwill contributed by Guru and Kavi (45,000+37,500)= Rs. 82,500 will be distributed between Hari and Ravi in their sacrificing ratio. Hari's share $=82,500 \times \frac{9}{11}=$ Rs. 67,500. Ravi's share $=82,500 \times \frac{2}{11}=$ Rs. 15,000. Hence, the correct option is 2.
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